💰 New Alpha | V for Vendetta, W for Win: NFLX/SPOT/CNK
💰 The market plunge is now a 'Mag 7 problem', as Mag 7 is becoming the problem itself.
💹 $Netflix(NFLX)$/$Spotify Technology S.A.(SPOT)$/$Cinemark(CNK)$: In the time of tremendous horror, use W patterns to spot winners.
📣 Stay tuned, supercharge purchasing power through CashBoost!
'There is no certainty, only opportunity.'
| Market recap
On Tuesday, $S&P 500(.SPX)$ fell below the psychological barrier of 5,000 points, opening high before experiencing a significant downturn. During the trading session, Trump announced a 104% tariff increase on China, prompting China to vow a strong retaliation, which led to heightened market risk aversion.
Among large tech stocks, $Apple(AAPL)$ and $Tesla Motors(TSLA)$ dropped nearly 5%, respectively. Notably, thanks to its diversified business model, $Microsoft(MSFT)$ has outperformed most other major tech companies this year.
Megacaps: Apple-Tesla=?
Any plan for iPhone 17? Better hold on. Apple has plummeted a cumulative 23% over the past four trading days. Since Trump's announcement of tariff hikes, Apple's market value has evaporated by nearly $775 billion, exceeding Tesla's market value of around $713 billion. A Made in the USA iPhone could see a price tag of $3,500, which Wedbush Securities analyst Dan Ives called outrageous, warning that tariffs on China could unleash a price storm akin to a Category 5 hurricane on American consumers.
MAGA: coal= the new gold?
To boost AI power supply, Trump is fully promoting a revival of the coal industry. Note that MCGA, here C stands for coal. The President signed an executive order to expand the extraction and use of coal in the U.S. In pre-market trading, coal stocks continued to rally, with $Peabody Energy Corp(BTU)$ rising nearly 20%, $Hallador(HNRG)$ up over 7%, and $Constellation Energy Corp(CEG)$ increasing by 2.7%.
Top movers: take your medicines
Healthcare stocks are performing exceptionally well; perhaps everyone should have taken their pill. $agilon health, inc.(AGL)$ +26%, $Pacira Pharmaceuticals(PCRX)$ +14%, $Humana(HUM)$ +11%, $Clover Health Corp(CLOV)$ +8%.
| V for Vendetta (2005)
It has aged well. Indeed, 2005 was two decades ago, and it has been twenty years since V for Vendetta was released.
People shouldn't be afraid of their government. This quote resonates even more with the citizens of the U.S. at this moment.
Tariffs are merely a symptom; underneath lies a collapse of order. Ray Dalio from Bridgewater reflects that the true issues needing recognition are the disintegration of monetary and economic order, domestic political and economic chaos in the U.S., and the breakdown of international geopolitical order.
| W for Win
As double V's make a W, double bottoms mark a WIN.
The W pattern, AKA double bottom, is a technical analysis indicator that traders use to identify potential bullish reversals within a downtrend.
So, is your seatbelt still holding? In the time of tremendous horror, pick some entertainment instead.
NFLX - Winners takes
$Netflix(NFLX)$ is one of the few large tech stocks to outperform Microsoft this year.
Economists believe that relatively affordable home entertainment sources have invaluable worth in the impending recession.
This week it rose 1.7%, with only a 2.4% decline for the year.
SPOT - A formidable competitor
$Spotify Technology S.A.(SPOT)$ is rapidly expanding from audio into video to secure a larger foothold.
Spotify recently confirmed plans to launch a new round of strategic expansion on April 29, extending its creator revenue program to nine European countries. With a 50% surge in video podcast users and a comprehensive rollout of its music video business globally, this music giant is directly challenging YouTube with its "audio + video" dual-engine approach.
The Spotify Partner Program, set to launch in November 2024, has already proven its wealth-generating capability in markets like the U.S. and the U.K. Recent data shows that creator incomes in the program have skyrocketed by 300% compared to the same period last year, with hundreds earning over $10,000 monthly and top creators reaching six figures in their first month.
CNK - Pre-market gains
$Cinemark(CNK)$ is one of the largest and most influential cinema companies in the world.
As of September 2024, it operates 499 theaters with 5,680 screens across 42 states in the U.S. and 13 countries in South and Central America, under various brands including Century, Tinseltown, and Rave.
CNK has shown signs of a rebound since last Wednesday, rising 3.5% this week, and with a PE ratio of 10, it presents an attractive valuation.
Stay tuned. Comment, like and subscribe to @Tiger_Contra.
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